PwC faces probe from accounting regulator over WHSmith audit

The Financial Reporting Council has launched an investigation into PwC regarding its audit of WHSmith. This probe follows the retailer's admission of accounting errors within its North American business, which overstated expected headline trading profit. These discrepancies resulted in delayed annual results last year and caused WHSmith shares to plummet by up to 40 per cent last August. The regulator is now scrutinising the Big Four firm's work to determine the extent of the audit failure.